Which of the Following Is Not a True Statement

question 21

Multiple Choice

Which of the following is not a true statement?

• A)For shareholder-employees who own 2 percent or less of the entity, the S corporation gets a tax deduction for qualifying fringe benefits, and the benefits are nontaxable to the employees.
• B)For shareholder-employees who own more than 2 percent of the S corporation, the S corporation gets a tax deduction, but the otherwise qualifying fringe benefits are taxable to the shareholder-employees who own more than 2 percent.
• C)S corporation owners have a tax incentive to pay themselves a low salary.
• D)An S corporation shareholder's allocable share of ordinary business income (loss)is not classified as self-employment income for tax purposes.
• E)None of the choices are false.

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Definitions:

Emergency Room

A medical treatment facility specializing in emergency medicine, providing acute care for patients without the need for an appointment.

Mass Murderers

Individuals who kill four or more people within a short time frame in a single location, often driven by various motives.

Feelings of Persecution

A psychological condition where individuals feel they are being targeted for harm or harassment by others.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of disregard for, or violation of, the rights of others.